Making up 35% of the homebuyer market, millennial homebuyers outnumber those of every other generation.
Gen X comes in second with 26% of the market. That means that your most likely target demographic as a seller is the Millennial generation. Read on and check out the infographic below to learn some of the key characteristics millennials are looking for in potential homes.
Millennials were born between 1980 and 2000 and range in age from 18 to 37. The median household income for millennials is $88,200, slightly below the market average of $88,800. Married couples are the most likely to purchase a home, followed by single women and unmarried couples; single men are the least likely demographic to purchase a home.
Millennial Homebuyer Concerns
Although only 68% of millennials view their starter homes as stepping stones to their dream homes, 82% say buying a home is a priority. The generation’s biggest concerns about purchasing a house are the costs of buying and maintaining a home and the time it takes to take care of a home. Since millennials are slower to marry than previous generations – and because both partners often continue working after marriage – millennials have less free time to put into cleaning and repairing their properties.
Millennials are the most educated generation, and they value the economical and environmental advantages from investing in green tech like certified energy efficient appliances, LED lights, and solar panels.
Updated Kitchen and Bath
On the same token, 75% of millennials want new appliances; if your property has appliances more than a year old, you should upgrade for maximum appeal.
As smarthomes become more prevalent, homebuyers are growing more conscious of a home’s WiFi compatibility. Ensure that each room has high-speed WiFi and plenty of plugs to charge devices.
Ideally, homes targeted toward millennials should be located in the suburbs and close to public transportation. More than half of this generation is buying homes in the suburbs while only 15% are purchasing in urban areas. Additionally, 65% say that a convenient location to their job is a key factor in choosing a property.
Young people today don’t need formal dining rooms; at parties, people tend to drift from the kitchen to the living room, making an open floor plan the most desirable layout for entertaining. Additionally, millennials are looking for smaller homes than their parents and an open concept lessens the space wasted on walls and makes rooms feel larger.
Make Them Fall in Love
This generation is all about maximizing space; while they want the option of having dining rooms, offices, and spare bedrooms, they don’t necessarily need them available at all times. If your rooms can easily shift purposes – say, an office that doubles as a spare bedroom or a dining room that converts to a workspace, young buyers will be thrilled.
Millennials’ ideal home is a 3 bed, 2 bath with a minimum of 1000 sq. ft. of living space. With lower incomes than their parents and more student debt, millennials can’t afford the extra square footage of a McMansion, nor do they want to pay for space they don’t need. Instead of building a bigger home, make sure you utilize all the space you have, including attics, basements, and side yards.
Growing up with sites like Pinterest and Instagram, this generation is especially adept at recognizing good design. They want high-end finishes like quartz countertops, stone detailing, and hardwood floors. Choose white or light-colored paints; create contrast with black detailing and stainless steel appliances. Select features that are sleek, modern, and high-tech for the most “Instagrammable” home.
Real Estate Marketing to Millennials
High Quality Photos
For millennials, the first screening of potential homes occurs online, not at open houses; 99% searched for potential properties online and 75% did drive-bys after finding a home they liked. Stage your home and hire a professional to take your listing photos.
Not only are video walkthroughs a great feature to add to your online listings, but VR marketing is growing in popularity; 71% of millennials view VR favorably.
Tech Trend: Drone Footage
Drones provide more effective marketing than traditional photos; with these devices, you can capture sweeping aerial views of your property that show off the exterior, the neighborhood, and the landscaping.